This copy is for your personal non-commercial use only. To order presentation-ready copies of Toronto Star content for distribution to colleagues, clients or customers, or inquire about permissions/licensing, please go to: www.TorontoStarReprints.com

Canada walks out on European trade talks after impasse reached

Canada’s ambitious trade deal with the European Union is in doubt as International Trade Minister Chrystia Freeland walks out on discussions aimed at resolving opposition to it.

▶

The Tories are criticizing the government after International Trade Minister Chrystia Freeland walked away from EU trade talks in Belgium on Friday. Tory trade critic Gerry Ritz says Freeland should keep working for the deal.

OTTAWA—Canada’s ambitious trade deal with the European Union is in limbo and with it the promise of jobs and investments, all derailed by concerns from a corner of Belgium and a showdown with Ottawa.

Tensions came to a head Friday when International Trade Minister Chrystia Freeland walked out of discussions aimed at resolving those concerns that have held up ratification of the trade pact.

Freeland had been in talks with the regional government in Wallonia in Belgium, which has raised deal-breaking objections to the pact.

But those discussions broke down Friday and a frustrated Freeland suggested the entire deal was dead for now.

“Canada has worked, and I personally have worked very hard, but it is now evident to me, evident to Canada, that the European Union is incapable of reaching an agreement, even with a country with European values such as Canada, even with a country as nice and as patient as Canada,” Freeland said in a statement.

Article Continued Below

Minister-President of Wallonia Paul Magnette attends a meeting on the Comprehensive Economic and Trade Agreement (CETA) at the Walloon regional parliament in Namur, Belgium, on Friday. Magnette spent hours talking with International Trade Minister Chrystia Freeland to find a compromise after she held talks on Thursday with Belgium’s foreign minister. (FRANCOIS LENOIR)

Canadian International Trade Minister Chrystia Freeland: 'Canada has worked, and I personally have worked very hard, but it is now evident to me, evident to Canada, that the European Union is incapable of reaching an agreement, even with a country with European values such as Canada, even with a country as nice and as patient as Canada,' Freeland said in a statement. (CHRIS WATTIE / REUTERS file photo)

“Canada is disappointed and I personally am disappointed, but I think it’s impossible. We are returning home,” a dejected Freeland said.

David Lametti, Freeland’s parliamentary secretary, later told reporters in Ottawa that the federal government had examined “every possibility, every option” to reach a deal.

“We have been flexible in assessing proposed solutions. The ball is now in their court,” he said of the Europeans.

Wallonia President Paul Magnette, who has been a holdout seeking to reopen elements of the agreement, struck a less pessimistic tone.

“I only asked for a bit more time, which was completely impossible for our Canadian partners,” Magnette told reporters, according to a Bloomberg report. “I regret that, and would like to thank them for their constructive and cordial approach. Maybe, one day that will allow us to restart the talks.”

In addition to eliminating most tariffs, the pact would also liberalize trade in services such as financial services, telecommunications, energy and transport, and give Europeans access to bid on government procurement projects.

When negotiations were concluded in 2013, then prime minister Stephen Harper declared it the “biggest deal our country has ever made. It is a historic win for Canada.”

Federal officials have touted the economic spinoffs of opening up the two markets, claiming it would boost Canadian exports to Europe by $13 billion.

But the deal requires the unanimous blessing of the European Union’s 28 member states and the regional government of Wallonia, a francophone region of 3.5 million people, has veto power over that nation’s endorsement.

Those objections have frustrated politicians in both Ottawa and Brussels, home to the EU’s headquarters, who are keen to see the trade deal become a reality.

The fallout of the tortured endorsement process could be especially damaging for the EU, whose credibility took a blow after Britain voted earlier this year to leave the union, a reality that European leaders know too well.

“If we will be unable to conclude a trade agreement with Canada I don’t see how it would be possible to have trade agreements with other parts of the world,” EU Commission President Jean-Claude Juncker said this week.

With stakes so high, one expert observer is confident that Brussels will find a way to ensure passage of the pact, but said the drama is damaging to Europe.

“It’s devastating . . . . No one wants to negotiate with Europe after this,” said Jason Langrish, executive director of the Canada Europe Roundtable for Business.

He said Freeland’s decision to quit was borne out of frustration and strategy.

“I wouldn’t say she has given up. She’s just decided to walk out of the room,” Langrish said in an interview.

“Sometimes you need to push these things to the boiling point,” he said. “She’s frustrated and for good reason. It’s ridiculous.”

But he does concede that the impasse likely means that deal won’t be signed next week, an event that Trudeau had originally made plans to attend.

He painted Wallonia as an “impoverished” region with a list of economic grievances, underscored by the September announcement by heavy machinery manufacturer Caterpillar that it intends to close a local plant with the potential loss of 2,000 jobs.

But the concerns raised in Wallonia found a receptive ear among CETA opponents in Canada, who are critical of what they call “corporate-led globalization.”

“There is deep, widespread opposition to CETA and many millions of people agree with Wallonia’s stance. Thousands across Europe and Canada spoke up and took action to make this happen,” Maude Barlow, national chairperson of The Council of Canadians, said in a statement.

Ed Fast, who negotiated the deal as Canada’s trade minister in the Harper government, said Friday he was disappointed that Freeland had not only left the talks but bluntly said that an agreement now appeared out of reach.

“I’m flabbergasted that Canada’s trade minister would throw up her hands in despair, walk away and say it’s impossible,” Fast said in an interview.

“It’s no mean feat to get a trade agreement negotiated. But good negotiators know exactly how to move forward and get things done. They never say it’s impossible to do,” he said.

Speaking after a joint cabinet meeting of the Ontario and Quebec governments, Premier Kathleen Wynne expressed hope that CETA isn’t dead because “there may be some ongoing conversations.”

“It’s a real problem for those of us … that are looking for new markets. We need those markets if we’re going to compete. If we’re going to develop our export capacity we need that openness,” Wynne told reporters at Ryerson University’s Digital Media Zone.

More from the Toronto Star & Partners

LOADING

Copyright owned or licensed by Toronto Star Newspapers Limited. All rights reserved. Republication or distribution of this content is expressly prohibited without the prior written consent of Toronto Star Newspapers Limited and/or its licensors. To order copies of Toronto Star articles, please go to: www.TorontoStarReprints.com